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How The Employment Market Has Shifted In the Southern Highlands

What’s changed and why it matters locally

​If you’re a Highlands employer who feels like hiring is harder than it used to be, then you’re not alone.

​Across the Southern Highlands, the employment market has changed in ways that are forcing businesses to rethink how they attract and keep good people.​

How do we know all this?​
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Well, by talking to our friend, an incredible local recruitment specialist and Director of Highland Recruitment, Margherita Colley.​

Local employers are dealing with workforce pressure from multiple angles. There are fewer active candidates, longer travel distances between towns, and more competition from Sydney-based roles that can be done remotely. At the same time, candidates are reassessing what work looks like for them and what they are willing to accept.​

According to Margherita, these changes have created a much tighter and more competitive market than many businesses are used to.​

“There are fewer candidates actively looking, and many of the strongest people are already employed,” she says. “Employers are often competing not just locally, but with metropolitan organisations offering higher salaries or remote work options.”​

So what’s important to consider in this rapidly changing recruitment world?​

A woman in a navy dress stands smiling in a bright room with white shelves. A large arched window reveals greenery outside. The room feels elegant and serene.

A tighter market with more competition

​One of the biggest challenges in regional areas like the Highlands is supply and demand. There are fewer people actively looking for work, and many strong candidates are already settled in roles they are not keen to leave unless the move truly makes sense.​

This means employers are no longer just competing with the business down the road. They are competing with city-based employers who can offer flexibility and higher pay, without requiring candidates to leave the region.​

On top of this, there is often a skills mismatch. The experience exists locally, but candidates are far more cautious about changing roles than they once were. A new position needs to clearly improve work-life balance, stability, or long-term security.​

A man and a woman are seated at a table in discussion. The man, in a black hoodie, appears attentive, while the woman gestures with a pen. Framed sketches decorate the wall behind them.

Candidate expectations have changed.

Over the past few years, candidate expectations have shifted significantly. What was once considered a perk is now often seen as standard.​

“Flexibility is no longer viewed as a bonus,” Margherita explains. “For many candidates, it is simply expected.”​

Even in regional areas like the Highlands, people want some autonomy over how they work. This might look like flexible start and finish times, the option to work from home occasionally, or an understanding employer when family commitments come into play.​

Hybrid work has changed what we see as a realistic expectation, too. People are less willing to lock into strict, traditional roles unless the trade-off really feels worth it.

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Why flexibility matters more in the Highlands

In the Southern Highlands, flexibility is more important than ever. Travel distances between towns can be pretty far, and daily commutes quickly add up.

​“When flexibility is not offered, candidates may not even apply,” Margherita says. “In regional areas, that can be the deciding factor between yes and no.”

​Experienced professionals are often balancing long commutes, family responsibilities, and other priorities. Without some room to move, a role can feel unrealistic, even if the business itself is appealing.​

For employers, this means flexibility is no longer a nice extra. It is a strong tool for attracting and retaining good staff.​

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Photo: Australian Tourism Data Warehouse

Opening the door to a larger talent pool

Flexible and hybrid arrangements can also help businesses access a wider and more diverse range of candidates. This includes working parents, professionals returning to the workforce, and people who live just outside the Highlands.

​It can also attract city-based candidates looking to relocate regionally, or those happy to commute part-time. This lets businesses reach more people without losing quality.​

“Flexibility allows employers to tap into candidates who might otherwise be excluded,” Margherita says. “It significantly broadens access to talent.”​

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Why local knowledge makes a huge difference

Recruitment in the Highlands is not one size fits all. Local knowledge plays a crucial role in finding the right person, not just someone who can do the job.​

“Regional recruitment is very different from city hiring,” Margherita says. “You need to understand travel realities, local salary expectations, and what candidates actually value.”​

In smaller communities like ours, reputation matters more. Word of mouth travels fast, and both employers and candidates are more cautious. A local recruiter like Highland Recruitment can represent roles honestly, while also protecting the employer brand.

​Local knowledge helps find candidates who fit in, especially when one hire can make a big difference in a small team.​

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Reaching candidates who are not actively looking

Many of the strongest candidates in regional areas are passive. That means they are not likely to be scrolling job boards or applying online, but the right opportunity could grab their attention if it suits their priorities.​

Because relationships and trust matter so much for us Highlanders, recruiters with established networks can have meaningful conversations with people who would otherwise stay off the radar. This leads to better matches and stronger long-term outcomes.

Three women smile in a bright office with arched windows. Two lamps, plants, and framed art create a welcoming atmosphere. A clock reads 10:10.

Why working with a local recruiter matters even more now

​For business owners deciding on whether to work with a recruiter, the current market makes the answer clearer than ever.​

“In a tight market, the cost of a prolonged vacancy or a wrong hire is far greater than the cost of engaging a recruiter,” Margherita says.

​A local recruiter brings market insight, targeted networks, and access to passive candidates who are difficult to reach through traditional methods. More importantly, they understand the realities of hiring in the Highlands.​

“Especially in regional areas, partnering with a local recruiter can save time, reduce risk, and lead to stronger, longer-term hires,” Margherita says.​

In a market that has clearly shifted, local knowledge is no longer optional. It is a key part of hiring well in the Southern Highlands.

So, if you need a hand finding the right hire, then reach out to Margherita and the team at Highland Recruitment.​

They genuinely know the Highlands market inside out and can help you connect with the right candidates.​

Visit their website here to find out more.

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